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Facts
The assessee appealed an order for Assessment Year 2017-18 where the Assessing Officer (AO) made additions for cash deposits and SBN deposits. The CIT(A) directed the AO to verify a bank loan and reduce an addition, but confirmed the SBN deposit addition.
Held
Despite the assessee's negligence, the Tribunal accepted the prayer to restore the issue of the Rs. 54.60 Lacs SBN deposit addition back to the AO for de novo adjudication, imposing a cost of Rs. 5,000.
Key Issues
Restoration of the issue of SBN deposit addition for de novo adjudication.
Sections Cited
69A, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा*रण वष* / Assessment Year: 2017-18) Shri Parthasarathy Balaji, ITO बनाम/ # 68, Rajaji Street, Non-Corporate Ward-22(1) Vs. Chengalpattu-603 001. Tambaram. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AHIPB-6497-M (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri D. Anand (Advocate) – Ld.AR � थ�कीओरसे/Respondent by : Ms. R. Anita ( Addl.CIT) -Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 23-09-2024 घोषणाकीतारीख /Date of Pronouncement : 25-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 15-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 24-12-2019. The Ld. AR, drawing attention to order of lower authorities, pleaded for restoration of assessment to Ld. AO which has been opposed by Ld. Sr. DR.
In the assessment order, Ld. AO made addition of cash deposit of Rs.172.81 Lacs u/s 69A. The Ld. AO also made another addition of Rs.54.60 Lacs, being deposit in SBN during demonetization period. The housing loan interest deduction as well as deduction claimed under Chapter VIA was also denied since the assessee failed to furnish supporting documents.
During appellate proceedings, the assessee submitted partial details. It was submitted that the assessee availed bank loan of Rs.108.05 Lacs which was credited in the bank account. The Ld. CIT(A) directed Ld. AO to verify the same and reduce the same from addition of Rs.172.81 Lacs. The addition of deposit of Rs.54.60 Lacs in SBN was confirmed against which the assessee is in further appeal before us.
Though the assessee has remained negligent in substantiating its case, however, keeping in mind the principle of natural justice, we accept the prayer of Ld. AR and restore the issue of impugned addition of Rs.54.60 Lacs back to the file of Ld. AO. The same would come at a cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned AO who shall proceed for de novo adjudication of deposit in SBN for Rs.54.60 Lacs. The assessee is directed to substantiate its case forthwith. 5. The appeal stand allowed for statistical purposes. Order pronounced on 25th September, 2024